Whenever a house is sold in England or Wales there is a risk where buyers withdraw before completion, which can cause financial and emotional devastation. The following case studies document real instances where property sales failed to complete after contracts were exchanged, highlighting the urgent need for protection mechanisms like ClozeSure.
Developer Pulls Out After Market Drop - Kent
KentScenario
A seller agreed to sell to a developer, exchanged contracts (with a reduced deposit), and delayed completion by six months. The market softened; the developer reneged.
Outcome
The seller forfeited £200,000 deposit, recouped ~£100,000 in interest, renegotiated limits on losses in onward purchase contract, and eventually sold at a market-adjusted price—avoiding insolvency by negotiation over litigation
Financial Impact
£200,000 deposit forfeited, ~£100,000 recovered
Buyer Fails to Complete Due to Market Downturn
SurreyScenario
We're acting for the seller who exchanged contracts with a buyer who paid a reduced deposit and was given an extended completion date. Following exchange, the property market softened considerably; the buyer reneged.
Outcome
After lengthy litigation the buyer was forced to complete. Our client retained the reduced deposit, recouped interest and costs (in the region of £50,000), and completed four years after exchange.
Financial Impact
£50,000 recovered in costs & interest, 4-year delay
Buyer Delays Completion Due to Cyber Attack
LondonScenario
A house was under offer. Contracts were about to exchange. Buyer's solicitor was subject to a cyber attack, delaying completion as they couldn't access any files.
Outcome
Eventually solicitor's system back up, buyer completed but contract was delayed by several months.
Financial Impact
Deposit at risk
Buyer Fails to Complete Due to Damp Report Requirement
LondonScenario
A three-property chain was set to complete. Buyer at bottom of chain demanded a damp report just days before completion.
Outcome
Chain collapsed, transactions all failed. Stress for all parties and legal costs for everyone.
Financial Impact
Stress and inconvenience costs
Kent – Buyer fails to Complete Resulting in extreme personal pressure
KentScenario
A seller who had to sell to fund his own purchase when his buyer pulled out at the last moment. This led to him not being able to complete his purchase, resulting in legal action being commenced against him.
Outcome
The seller had to borrow £1m on bridging terms and ultimately also went to court himself against his buyer to recover compensation. Three months of delays and costs.
Financial Impact
£1m bridging loan costs, 3 months delay
Penny & Ivor – Divorce in Dorset
Devon/DorsetScenario
Acrimonious divorce proceedings. Ex-husband agreed to sell family home and split proceeds. Days before completion, he pulled out of sale claiming discovery of Japanese knotweed.
Outcome
14 years of bitter litigation followed. The ex-wife had to leave the property with just £500,000 instead of £1,000,000. Divorce settlement eventually concluded in 2024.
Financial Impact
£500,000 lost by ex-husband, 14 years of financial insecurity, divorce settlement delayed until 2024
Conveyancer lawyer – Lincolnshire
LincolnshireScenario
Having exchanged contracts on two transactions in the same chain, with completion set for 5th November, buyer's solicitor advised they were unable to complete due to solicitor firm merger. The mortgage was issued by Co-op Bank and the newly merged firm were not on that lender's panel of Solicitors.
Outcome
The chains held whilst the buyer found a new solicitor to take over the file, including a complete new mortgage application. Eventually completed in February.
Financial Impact
Chain collapse, legal delays
Billionaire Neighbours Attempt to Change Terms After Exchange
Notting HillScenario
An elderly couple in their 80s agreed to sell their long-time Notting Hill home to their ultra-wealthy next-door neighbours for £1.9 million. After exchange, the buyers tried to renegotiate, claiming the property needed major structural work.
Outcome
Sellers refused to accept reduced terms. Buyers backed down when sellers threatened court action, and they eventually had to complete at the original terms and pay substantial costs. Emergency bridging finance was required.
Financial Impact
Emergency bridging finance costs, six-figure deposit at risk
£45,000 Cost of failed Completion
Caversham, ReadingScenario
Buyer paid a 15% deposit (£67,500) when exchanging contracts but failed to complete on the agreed date, forfeiting their deposit.
Outcome
Seller kept £33,900 of the deposit but paid £12,000 compensation to their own buyers plus £3,200 in legal costs. Net loss to the buyer was £45,000.
Financial Impact
£45,000+ total loss (£67,500 deposit + £12,000 compensation + £3,200 costs - £33,900 retained)
Chelsea - Fictitious excuse not to complete
Chelsea, LondonScenario
A wealthy buyer exchanged contracts on a £4.5 million Chelsea property then tried to withdraw claiming their building survey highlighted "structural issues" that would cost £150,000 to fix. The seller's structural engineer found no such issues.
Outcome
The buyer's claims were proved fraudulent in court. After 18 months of litigation, the buyer was forced to complete and pay £150,000 in legal costs to both sides.
Financial Impact
£150,000 legal fees
Sandbanks, Dorset - Purchaser had change of mind
Sandbanks, DorsetScenario
A purchaser exchanged contracts on a £1 million property in exclusive Sandbanks but then decided they wanted a larger property. They attempted to withdraw without any valid legal reason.
Outcome
The seller retained the £100,000 deposit and successfully sued for additional damages. The property was resold at a lower price in a falling market, with the original buyer liable for the difference plus legal costs.
Financial Impact
£200,000+ total loss including deposit and market difference
£300k deposit forfeited in Marylebone
Marylebone, LondonScenario
A foreign investor agreed to purchase a £3 million Marylebone apartment as an investment, paying a substantial 10% deposit of £300,000 on exchange.
Outcome
The buyer failed to complete due to financing issues in their home country. The full deposit was forfeited to the seller, and the property was remarketed.
Financial Impact
£300,000 deposit forfeited
Collingham Gardens, South Kensington - Buyer Got Freaked Out
South KensingtonScenario
A first-time buyer in their 20s, funded by their wealthy parents, exchanged contracts on a £2.2 million South Kensington flat. As completion approached, they developed cold feet about the massive financial commitment.
Outcome
The buyer attempted to withdraw but was forced to complete after their solicitor advised them of the serious legal consequences. The transaction completed late with additional costs and stress for all parties.
Financial Impact
£220,000 deposit at risk, completion stress and additional costs
Kent – Buyer failed to complete
KentScenario
A buyer exchanged contracts with a completion date set for Friday. On the Thursday before completion, the buyer's mortgage offer was withdrawn by the lender due to a change in the buyer's employment status.
Outcome
Unable to complete, the buyer lost their deposit and faced additional liability for the seller's costs and damages. The seller had to remarket the property in a declining market.
Financial Impact
Deposit forfeited plus additional damages and costs
These real-world examples demonstrate the devastating impact of failed completions on sellers, from financial losses running into hundreds of thousands of pounds to years of emotional distress and uncertainty. ClozeSure provides essential protection against these risks, offering peace of mind and financial security for property sellers.
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